This document describes in detail about the various steps to be taken for creating a new brand. It also talks about brand positioning, market segmentation, market capture and various others strategies that could be taken up to make a new brand success

1. Kỹros International Private Limited
MARKET ANALYSIS AND MARKETING PLAN
R. Aswath

2. About Us
Kỹros International™ (LLP) is a privately funded company specializing in textile industry.
The company known for its research and development in khadi fabrics, has come up with
an improvised material which has radically improved this fabrics texture, feel and
durability.
The company wants to place this product in semi-premium segment. There is cut-throat
competition. The marketing team of company has been asked to come up with a plan to
execute this idea. This report covers both market analysis and marketing plan for
executing the purpose.
Vision 2020
• Improve status of Khadi and increase
its overall demand to carve out a
niche in the textile industry.
• Customer is king. Strategic
positioning of retail/online outlets to
better serve customers.
• Making the material, the new fashion
fabric for world fashion.
Mission 2016
• Complete presence tier I cities. Increased
presence in tier II and tier III.
• Increased presence in various segments
• Positioning khadi as a ‘the garment of
choice.
• Increased presence in international
markets.
• Taking customization to next level.
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3. About Khadi
What is khadi ?
Khadi is handmade, handspun and hand-woven cotton fabric made by thousands of
skilled artisans living in rural areas.
How it is Made ?
Hand picking of the cotton balls, Ginning, Cardings, Roving & spinning, Sizing, Weaving ,
Finished Product ready for market.
Who works in the industry?
70% of the artisans involved in the process of Khadi production are women.
Characteristics
1. Cool in summers and warm in winters.
2. Very light and airy.
3. Soft feel texture and versatile fabric
4. It falls well and becomes second skin after two washes.
5. It is the only fabric where the play of texture is so unique that no two fabrics will be
absolutely identical, thus lending its exclusivity and inimitability in terms of feel and
texture.
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4. Game Strategy
Market Analysis
Describes Targets (Who & Why)
 Customers
 Competition
 Competitive Advantage
 Critical Success Factors
 Critical Risks
 Potential Sales/Market Share
Marketing Plan
Describes Tactics (How)
 Product Positioning
 Price
 Placement
 Promotion
 Sales Process
 Partnerships
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5. Secondary Research Data [Raw Material]
India’s textile market size
Cotton Production
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6. Secondary Research [Competition Analysis]
28
12
Revenue 2013
8 9
4 13
7
6
5
5
4
Aditya Birla Nuvo Ltd. Alok Industries Ltd. JBF Industries Ltd.
S. Kumars Nationwide Ltd. Arvind Ltd. Vardhaman Texttiles
SRF Ltd. Raymond Ltd. Garden Silk Mills Ltd.
Indo Rama Synthetics Ltd. Others
Direct Competitors Indirect Competitors
Fab India Raymonds, Peter England, Wills Lifestyle
KVIC (Khadi and Village Industry Commission) Allen Solly, Park Avenue, Benetton
Levis Black Berry
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7. Secondary Research [Demographics]
o India’s population is 123 billion. Of this, almost 60 percent of the population fall in
the age group of 15 to 54.
o Median age: Male (26.1); Female (27.4); Overall (26.7)
o Religion: 80.5% Hindu, 13.4% Muslim, 2.3% Christian, 1.9% Sikh
Target Segment
o Based on data, it is concluded that, the target age group should be around the
median age. Thus, people in age group 18-34 (years) are selected.
o Religion and Regional demographics played a role in concluding which type of
apparels to be more focused.
o A primary research (using Online Survey) was conducted to understand the various
unanswered questions. These have been discussed in detail in later part.
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8. Secondary Research [Production Unit and Head Office Location]
Head office location: Okhla, New Delhi
Reasons:
- Notified Industrial Area
- Huge base of distributors and exporters
- Good Connectivity
Production Unit: Orissa
o Availability of low cost power to industry
o VAT exemption
o Tax exemption for a period of 10 years.
o Labour wages are lower in comparison with other states
o Connectivity to major ports
o Stable government
o Direct access to raw material (also neighbouring states are cotton growing)
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9. SWOT ANALYSIS
STRENGTHS
1. Skilled Labor.
2. Low cost & quality raw material
3. Capital Output: Capital Labour low.
4. Reflects Indian culture
5. Tax Exemptions
6. Fashion
7. Employment Generation
WEAKNESS
1. Lack of skilled artisans
2. Lack of awareness
3. Lack of skilled training
4. Lacks of promotional activities
5. Khadi perceived as not fashionable
OPPORTUNITY
1. Huge labor potential
2. Demand for readymade Khadi
products of new designs and quality
3. Capturing an untapped markets
4. Emerging Trend
5. Immense potential for exports
6. Growing consumer preference
THREATS
1. Changing Government policies
2. Competition
3. Price variation of raw material
4. Cut throat competition
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10. Primary Research [Methodology]
o Goal of this primary research was to understand the various factors that customers
take into consideration while making purchase.
o The respondents were between the age group of 18 and 34.
o Respondents perceived quality as a factor which enhances their visual perception.
Cloth texture and Brand Image also plays an important role in determining quality.
o Launch date was also fixed on basis of the research.
o SURVEY MONKEY™ was used to conduct this online survey.
o A total of 124 responses were collected.
o 34% of the people surveyed were female.
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11. Market Research Data
Preferred Month for Purchase
14%
52%
3%
22%
9%
0% 10% 20% 30% 40% 50% 60%
Spring
Autumn
Summer
Winter
No Idea!
Preferred Month for Purchase
Launch date was planned
accordingly
Preferred Mode of Purchase
19%
17%
64%
Online Local Retail Vendor Malls
Malls remain the preferred mode of
purchase in Tier I cities. Secondly,
they preferred Online shopping. Tier II
and Tier III cites gave a hung verdict.
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12. Preference
With whom one prefers to shop with
16%
47%
29%
7%
2%
Alone Friends Family Partners Colleague
This question helped
understand whom to
focus while advertising
What do I look for in my cloth?
17%
19%
20%
15%
7%
0% 5% 10% 15% 20%
Color
Style
Comfort
Price
Quality
What do I look for in my cloth?
This helped understand
what customer looks for
when he/she purchases.
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13. Pricing
How much are you willing to spend on
20%
clothing per purchase?
42%
28%
50%
40%
30%
20%
10%
7% 3% 0%
<2000 2000-4000 4000-6000 6000-8000 >8000
How much are you willing to spend on clothing per purchase?
Pricing, needless
to say!
What encourages you to try out new brands?
Celebrity Style
Friends Suggestion
Family Suggestions
By Visiting Exhibition
Magazines/Fashion Blogs
Others
10.0%
5.0%
4.0%
24.0%
24.0%
33.0%
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0%
What encourages you to try out new brands?
This helped
diversifying
ad expenses
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14. Primary Research Data
Preferred Clothing Variant
85%
Preferred Clothing Variant
13% 2%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Ready Made Designer Tailored (Local
Stitching)
A whopping 85% preferred
readymade clothes! This
question helped segmenting
manufacturing expenses
Perceived Foreign Brand 62%
Perceived Indian Brand 14%
No preference to brand 24%
Ignorance is bliss!
(>90% of the respondents
presumed both Benetton
and Louis Philippe to be
foreign brand. Also their
perceived quality varied
accordingly)
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15. Phases of Launching a new product
Stealth mode: (Time frame: 18 months)
o This is the most important phase.
o All pre-launching activities needs to be synchronised for launching the product on
said date.
o This period should focus more on positioning the brand. At the same time, care
needs to be taken that, not a lot about the product is revealed.
o Most of the time was spent on training labours. One of the major problems with
Khadi products is inconsistency in fabric quality. In order to take care of this, all
workers were provided with tools of specific dimensions. They were supplied at no
loss profit basis. Even the financing in certain instance were provided by the
company itself
o A 3 month rigorous training program is designed to educate and increase the skills
of workers.
o Steps were taken to create buzz about this new product.
o Distribution networks and Service centres were set.
Launch phase:
Product is launched in the month of October
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16. Strategy
Product Concept
Preliminary
Positioning
Strategy
Launch Planning
Strategic Partnership
Channel
Post Sales
Support Plan
Launch
Date
~18
Months
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17. Program Manager
Creative, Website,
Interactive
Marketing Product
Launch
Program
Manager
Development/
Technical
Marketing: Data
Sheets & Demos
Press/Analyst
Relations, Materials
Production
Strategic Partners,
Investor Relations
Shows,
Sales:
Weekly Status and
Project Management
Customer
Advocates Content
CTO
White Papers,
Simulation Strategies
Conferences,
Events
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18. Distribution Network
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19. Creating a Brand
What is a brand?
It is not a logo, not an identity and neither a product
A brand is a persons gut feeling about the product, service or organization. A brand is
defined by individuals. Brand is not what you say it is, but rather what they say it is.
What gives innovative brand their traction in market place?
 Distinctiveness
 Brevity
 Appropriateness
 Ease of Spelling
 Likability
 Extendibility
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20. Orion Alley it is!
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21. Kỹros International Private Limited 21

22. Ways to target the market
• Geographic
– local, regional, national, international
• Demographic
– B2C: gender, age, income, education, ethnicity
– B2B: revenues, # employees, industry
• Psychographic
– values, lifestyles, hobbies
• Behavioral
– benefits sought, usage rate
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23. Promotion, Sales process and Partnerships
o Shop with friends and relatives and get special discounts
o Special discounts to customers on occasions like their birthdays, anniversaries, festivals
etc.
o Special offers on purchases during some days of month
o Surprise gifts to regular customers.
o Social media groups like Facebook page, twitter handles etc to understand customers
better.
o Ad’s designed to interest youth and parents.
o Customization of clothing (for online purchases)
o Brand ambassadors to be Hollywood actors and Actresses. (This age group connects
well with Hollywood)
o Cover page ad campaign in every leading News Paper, TV magazines
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24. The Opportunity
KEY TAKEAWAY POINTS
Companies’ upstream activities—such as sourcing, production, and logistics—are being
commoditized or outsourced, while downstream activities aimed at shaping customers’
perception and reducing their costs and risks are emerging as the main sources of
competitive advantage.
The Strategy
To compete effectively, companies must shift their focus from upstream to downstream
activities, emphasizing how they define their competitive set, influence customers’
purchase criteria, innovate to solve customer problems, and build advantage by
accumulating customer data and harnessing network effect.
The Lesson
The downstream tilt is most relevant to three types of companies: those in product-based
industries such as Pharma, those in maturing industries, and those seeking to
move up the value chain. Mastering downstream activities can allow these firms to build
new forms of customer value and lasting differentiation.
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25. Changing Customer Perception
Define competitive set
Change purchase criteria
Build trust
Innovation
Tailor offering to consumption circumstances
Reduce customer costs and risks
Building Accumulative Advantage
Harness network effects
Accrue and deploy customer data
Cialis-Viagra Case
Redefining customers’ purchase criteria is one of the most powerful ways companies can
wrest market leadership from competitors.
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